The following information is available for Castle Company for the month of January 2010.
|
Sales
|
$80,000
|
|
Cost of goods manufactured
|
$25,000
|
|
Factory supplies used
|
$800
|
|
Raw materials purchased
|
$25,000
|
|
Commissions paid
|
$3,000
|
|
Materials handling cost
|
$2,250
|
|
Advertising
|
$650
|
|
Direct materials issued to production
|
$20,000
|
|
Cost of good sold
|
$35,000
|
|
Salaries, factory supervision
|
$2,500
|
|
Salaries, corporate executives
|
$3,750
|
|
Property tax - factory
|
$350
|
|
Raw materials inventory, 1/1/2010
|
$3,500
|
|
Work-in-process inventory, 12/31/2009
|
$12,500
|
|
Work-in-process inventory, 1/31/2010
|
$25,250
|
|
Finished goods inventory, 1/31/2010
|
$9,500
|
Materials handling cost is the cost of moving materials fromthe warehouse to the factory floor.
1. Determine the cost of raw materials inventory on January 31, 2010.
2. Determine the direct labor cost for January 2010.
3. Determine the cost of finished goods inventory on January 1, 2010.
4. Determine the profit earned forthe month of January 2010